Homeland Security Enhancement Act of 2003

Homeland Security Enhancement Act of 2003 - States that: (1) State and local law enforcement personnel are fully authorized to investigate, apprehend, or transfer to federal custody aliens in the United States (including interstate transportation of such aliens to detention centers) in order to assist in the enforcement of U.S. immigration laws; and (2) a State that does not have a statute permitting enforcement of Federal immigration laws within two years of enactment of this Act shall not receive certain Federal incarceration assistance.

Amends the Immigration and Nationality Act with respect to illegal aliens to: (1) establish criminal penalties and forfeiture for aliens unlawfully present in the United States; and (2) increase specified criminal penalties for illegal entry and failure to depart violations.

Provides for the listing of immigration violators in the National Crime Information Center database.

Requires States and localities to provide the Department of Homeland Security with specified information about apprehended illegal aliens in order to receive certain Federal incarceration assistance. Provides Federal reimbursement for State and local costs in providing such information.

Directs the Secretary of Homeland Security to construct or acquire 20 additional detention facilities for aliens detained pending removal or a decision on removal.

Amends the Act to provide for Federal custody and State or local compensation of State or locally apprehended illegal aliens.

Directs the Secretary to establish immigration-related training for State and local personnel. Authorizes a related fee.

Provides: (1) personal liability immunity to the same extent as corresponding Federal immunity for State or local personnel enforcing immigration laws within the scope of their duties; and (2) civil rights money damage immunity for State or local agencies enforcing immigration laws unless their personnel violated criminal law in such enforcement.

Sets forth provisions for the detention of aliens in State and local facilities prior to their examination for removal.

States that the Department shall continue to operate the Institutional Removal Program, which shall be expanded to all States.

Amends the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to prohibit a Federal agency from accepting for any identification-related purpose a State driver's license unless, if the driver's license is issued to an alien who is in lawful status but who is not an alien lawfully admitted for permanent residence, the license expires on the date on which the alien's U.S. residency authorization expires.

States that in the issuance of any Federal public benefit that requires recipient identification, no Federal entity may accept any identification document unless: (1) the document was issued by a Federal or State authority and is subject to verification by a Federal law enforcement, intelligence, or homeland security agency; or (2) the recipient is lawfully present in the United States, is in possession of a passport; and is a citizen of a country for which the visa requirement for U.S. entry is waived if the alien possesses a passport from such country.